Skip to main content

Investing in Life Insurance

Buy Best Life Insurance Online


Buying life insurance can be a crucial decision. Some people may choose to buy a cover early in life. Others may leave it until later. If you are thinking of investing in a life insurance policy, here are 10 points you may want to know.


1. Necessity: Investing in a life insurance policy can make complete sense if you are taking care of other people. Life insurance provides more than the death benefit. It may help you prepare for any uncertainties. But what if you plan to remain single? Or, you do not have any future liabilities? Then you may think again before buying a life insurance policy.


2. Purpose: You may feel investing in life insurance is a fundamental need. Then consider the purpose of buying your policy. For example, do you expect your policy to pay for your child's education in case of an uncertainty? Or, do you want it as a security for your high-risk job?


3. Coverage: Individuals need different insurance covers. What is the amount of cover you need? Your annual income may not be the ideal figure to calculate your desired cover. You may want to consider other important factors before deciding. What is your age, profession, and medical condition? How many people are dependent on you? What are your financial goals?


4. Category: If you are clear about the purpose of your life insurance and the amount of cover you need, it will help you choose the category of insurance you want to buy. You can opt for either a term insurance cover or a whole insurance cover. Do you want to pay a fixed premium rate for a specific period of cover? Then a term insurance is best for you.


5. Debt: When you decide to invest in a life insurance policy, you have to know how much you are able to pay. So you may want to consider any debts you already have. These existing debts could hamper your ability to pay the insurance premium on time. This delay could end your policy. Most insurance companies may also increase the premium when you renew your policy.


6. Investment: You may not want to ignore the investment element while purchasing a life insurance cover. A unit-linked insurance policy (ULIP) provides for death benefit and financial security. It may also provide an opportunity for your investment to grow by linking it to the stock market.


7. Protection: Your life insurance policy may pay for unexpected events such as death, disability, and sickness. It could provide protection to your loved ones by reducing the effects of loss of income due to death. You can even draw a loan against your life insurance policy. Many banks and financial institutions accept it as a guarantee.


8. Savings: Investing in a life insurance policy could lead to savings. A term life insurance could leave you with cash in hand. You could use this money for other investments. For example, you could pay a certain amount of premium for a specific time. You could then use the rest of the insurance amount to buy a child plan. You may accumulate cash value with permanent life insurance and get tax-deferred growth.


9. Tax benefits: Life insurance premiums are exempt from tax up to a certain amount. The claim amount received by the beneficiary is also tax-free. But each policy is different. So it is important for you to know how much you will be paying to keep your policy practical. Sometimes the cost may be more than the tax benefits.


10. Terms: Each life insurance policy has different terms and conditions. You need to understand and read the complete policy document before signing to buy. You may want to know the future impact on the premium. You may also want to know if there is any bonus or cash value that you could withdraw in the near future.







------------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

--------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Call us on 94 8300 8300

---------------------------------------------

 

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

Zero Coupon Bonds or discount bond or deep discount bond

A ZERO-COUPON bond (also called a discount bond or deep discount bond ) is a bond bought at a price lower than its face value with the face value repaid at the time of maturity.   There is no coupon or interim payments, hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Zero-coupon bonds may be long or short-term investments.   Long term zero coupon maturity dates typically start at 10 years. The bonds can be held until maturity or sold on secondary bond markets.
Read more

SBI bonds FAQ

  Maximum retail subscription and over – subscription There is a lot of excitement around these bonds, so I won't be surprised if they get over-subscribed on the first day itself. So, I thought Sameer asked a very good question about over-subscription. Here is that discussion. Here are some other questions that you may find useful. Can I trade the SBI bonds on NSE after it lists? Yes, these can be traded after listing. Where can I get the application forms, and can I buy the bonds online? You can get the application from notified branches, and then fill it up there and submit it. To the best of my knowledge, there is no way to invest in them online, but if anyone knows otherwise then please leave a message, and let us know. Can NRIs apply for these bonds? NRIs can't apply for these bonds as they fall under one of the ineligible categories. Can you take a loan by keeping the SBI bonds as security? The terms of the issue in the prospectus state that the bank shall no...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Principal Emerging Bluechip

In its near ten year history, this fund has managed to consistently beat its benchmark by huge margins The primary aim of Principal Emerging Bluechip fund is to achieve long term capital appreciation by investing in equity and related instruments of mid and small-cap companies. In its near ten year history, this fund has managed to consistently beat its benchmark by huge margins. This fund defined the mid-cap universe as stocks with the market capitalisation that falls within the range of the Nifty Midcap Index. But, it can pick stocks from outside this index and also into IPOs where the market capitalisation falls into this range. Principal Emerging Bluechip fund's portfolio is well diversified in up to 70 stocks, which has aided in its performance over different market cycles. On analysing its portfolio, the investments are in quality companies that meet its investment criteria with a growth-style approach. Not a very big-sized fund, it has all the necessary traits to invest with...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now